NIO INC. ADS - NIO Limited (symbol ‘NIO’) - 02/28/2024 (GMT)

NIO Limited's (symbol ‘NIO’) share price managed to cover the downward move through the quarter and closed at almost 0% change. The company’s earnings report for the fiscal quarter ending December 2023 is expected to be released on Tuesday 5th of March before the market opens. The consensus EPS is $-0.51 against $-0.51 in the same quarter last year.

‘ The company is yet to become profitable since its incorporation and this is a major fact that deters investors from trusting the company’s growth. As of 30/09/2023, the company had increased negative net income mostly due to higher costs of goods sold. Negative net income grew by almost 10% while the cost of goods sold increased by more than 50% year over year. Also, JPMorgan downgraded NIO stock to "underweight" with a lowered price target of $5 per share, reflecting a bearish stance on the company's future performance. ’ said Antreas Themistokleous, trading specialist at Exness.
 
Technical analysis shows that the price has been trading in a declining channel formation for the last couple of months with no significant indications of a reversal to the upside just yet. In addition, the price is currently trading below all technical indicators while the Stochastic oscillator is not recording any oversold levels; therefore, there is still room for further move South. The 50-day moving average is still trading below the 100-day moving average, further validating the bearish trend. The first area of possible support might be the $5, which is the psychological support of the round number and is also an inside support area where the price reacted in January 2020.